Three Things To Consider

386
Wed, Oct 5, 2011 - 9:59am

As we all ponder the pretty little FUBMs on the charts to the right, I thought I'd touch upon a few basic, fundamental questions this morning.

First of all, a chart. This is a 15-minute Dec11 gold. Say what you want about the helpfulness of short-term charts right now but I contend that they can still help you to see some patterns of resistance and support. In this case, note the almost perfect double-bottom. You should ask yourself, "why does that happen?". In this case, I suppose it indicates a significant buyer at 1600. Whether or not that buyer(s) is great enough to stem the overall tide lower is an important question but, for now, at least this buyer has given us a level to watch going forward.

paper_10-5amgold1.jpg

OK, onto the fundamental questions. The first item I'd like you to consider is the article below by Charles Hugh Smith, made available on Chris Martenson's site. While we must always be willing to consider reasoned, contrarian views, the issue I have with the general thesis here is one of normalcy bias. Yes, IF the current economic system survives another 5 years and IF life and business continue on as usual, THEN perhaps the idea of a long-term dollar rally has merit. Anyway...presented without further commentary:

https://www.chrismartenson.com/blog/heresy-and-us-dollar/63178

This next item is something that was emailed to me over the weekend. I was going to write an entire post about it but now I don't need to as the link below is an excellent summary. Understand this is a very important development in the fight over U.S. "states rights". This movement away from the Federal Reserve system will have enormous constitutional consequences. We must all watch these developments very closely.

https://www.zerohedge.com/contributed/utah-monetary-declaration-freedom-tyranny-central-bankers

Lastly, an item that went largely unnoticed by the regulars here at TFMR. Statusquotians see this story as no big deal. On its surface, it's simply the CME further legitimizing the value of gold. I contend that there is much more here than meets the eye. Never forget that the first "C" in "C/C/C" is for CME. The CME owns the Comex. Owns it. As in it is their property and they are liable for it. In this case, by raising the gold collateral maximum to $500MM, they are inviting (begging) the holders of physical, allocated gold to throw it back onto the unallocated pile. If you need another primer on the unallocated/allocated system, here's a link (https://gold.bullionvault.com/How/UnallocatedGold). Once the gold is back into an unallocated account, the bullion banks can lease it out for further price suppression and even use it to settle physical contracts. No one in their right mind should allow this but, as the adage goes, a fool and his money (gold) are soon separated.

https://blogs.wsj.com/marketbeat/2011/10/03/cme-boosts-limit-for-gold-used-as-collateral/?mod=google_news_blog

That's all for now. I wish you a happy and pleasant day but keep an eye on those gold levels I mentioned. TF

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  386 Comments

ewc58 · Oct 5, 2011 - 4:55pm

Hideous Holder: Update II

ATF Fast and Furious: New documents show Attorney General Eric Holder was briefed in July 2010

WASHINGTON - New documents obtained by CBS News show Attorney General Eric Holder was sent briefings on the controversial Fast and Furious operation as far back as July 2010. That directly contradicts his statement to Congress.

On May 3, 2011, Holder told a Judiciary Committee hearing, "I'm not sure of the exact date, but I probably heard about Fast and Furious for the first time over the last few weeks."

Yet internal Justice Department documents show that at least ten months before that hearing, Holder began receiving frequent memos discussing Fast and Furious.

Read the new documents:

Read the July 5, 2010 memo

Read the "It's a tricky case" email

Read the memo to AG Holder from Asst. AG Lanny A. Breuer

The documents came from the head of the National Drug Intelligence Center and Assistant Attorney General Lanny Breuer.

In Fast and Furious, ATF agents allegedly allowed thousands of weapons to cross the border and fall into the hands of Mexican drug cartels.

Gunwalking scandal uncovered at ATF

It's called letting guns "walk," and it remained secret to the public until Border Patrol Agent Brian Terry was murdered last December. Two guns from Fast and Furious were found at the scene, and ATF agent John Dodson blew the whistle on the operation.

Agent: I was ordered to let guns "walk" into Mexico

Contd

Economical Disaster · Oct 5, 2011 - 5:00pm

No Inflation? Really?

Not only is their INFLATION over the next 3 years, it goes up MONTHLY. Soon it will be DAILY. How can there be NO inflation when I paid .25 for a beer in the 80's? I PAID $10 for a glass of SHITTY DRAFT the other day! How about those bag of chips for .10 now they are OVER a dollar? Ivars throw your charts in the garbage THEY'RE NOT WORKING CORRECTLY..

Gold went from $250 - $1900 in ten years. That's HYPERINFLATION. LOL

humbleprofits · Oct 5, 2011 - 5:00pm

BofA

The upcoming fee for debit use proposed by BofA was the the last straw for me. Finally moved my money to a small local bank (has at most 10 branches). Specifically asked if they have a debit card fee.....NO. Are they going to have such a fee in the future.....NO. 

Plus they give me a few % points on checking if if I pay bills online, use the debit card and get online statements. Sign me up. My concern was using ATM when not in the local area. Well, they will refund me $15 a month in these fees as well. 

This is how you gain and retain business BofA. Instead your stock is in the sh!$$er and your online system is "down." 

I would like to thank Turd and all of the contributors for helping me see the forest through the trees, empowering me to start taking appropriate action for these "interesting" times.

Humble

ivars Bay of Pigs · Oct 5, 2011 - 5:01pm

@Bay of Pigs

Yes, the reason being inflation in Eurozone due to defaults, money printing and EUR not being a real reserve currency.

Once they b

egin ( inflation is already 3%) and ECB lowers interest rates to try to avoid recession, EUR will plummet, as shown here:

SO until 2013, there is already about 30% increase from EUR, or , given EUR share, around 17% increased in USDX only because of Europes problems via exchange rate.

Add here other currencies in the basket that may suffer even more than EUR ( or not) , plus recession in the USA which will turn USD,once people realize recession is deflationary whatever FED does ( it is also limited in its doings not to blow debt too soon) , USD will become safe haven in q1 2012 for everyone.

That may add the rest. There has been times in history if USDX when if has shot up pretty fast- for example , during double dip recession 1981-1985 it shot up from 80 to 160 or 2 times in 4 years- that is about 25% /year, below, but not dissimilar to what I suggest. 80 to 120 is 50%.-but there is a small downwards blip, so 120 is reached finally in H2 2013- 1, 6 years after 80, or, 50%/1,6= 30% /year. Nothing special, it has happened:

Interestingly, 1980-1982 recession is also a double dip recession ( which I expect here as well) , but definitely not deflationary.

Charles S. Hamlin humbleprofits · Oct 5, 2011 - 5:05pm

Humble,  What bank/credit

Humble, What bank/credit union did you go with?

ewc58 · Oct 5, 2011 - 5:09pm

Hideous Holder update III: CBS now sitting on own F&F reporter!

Is CBS News Silencing Fast and Furious Reporter?

Yesterday, CBS News investigative reporter Sharyl Attkisson told radio show host Laura Ingraham that the White House yelled and swore at her over her reporting on the Fast and Furious gunrunning scandal tied to the deaths of two U.S. law enforcement agents. Attkisson also revealed that she'd also been yelled at by the Justice Department.

M16 and AK-47 comparison.png

Today, I called CBS News in an attempt to interview Attkisson. I was told by CBS News senior vice president of communications Sonya McNair that Attkisson would be unavailable for interviews all week. When I asked why Attkisson would be unavailable, McNair would not say.

I've also heard from a producer at another media outlet that has previously booked Attkisson that they tried to book her since she made news with the Laura Ingraham interview yesterday. They were also told that she would be unavailable.

After our initial conversation earlier today, I called McNair back and left a message with her office. I also sent McNair an email asking whether Attkisson's unavailability has anything to do with reporting that the White House and Justice Department were angry at her. I further asked McNair if the White House or Justice Department contacted CBS News about Attkisson since yesterday. McNair has not responded to my inquiries.
Contd.

Tesla · Oct 5, 2011 - 5:10pm

Silver OI (+ 81 total contracts)

Daily Settlements for Silver Futures (PRELIMINARY)Trade Date: 10/05/2011
Month Open High Low Last Change Settle Estimated
Volume
Prior Day
Open Interest
OCT 11 28.605 30.220 28.410 - +.522 30.317 55 34
NOV 11 30.110 30.570 28.480 - +.511 30.331 59 76
DEC 11 30.255 30.640 28.435 - +.513 30.352 43,189 62,358
JAN 12 29.370 30.400 28.765 - +.513 30.371 32 198
MAR 12 30.280 30.510 28.500 - +.513 30.390 2,828 9,147
MAY 12 30.065 30.440 29.800 - +.512 30.408 130 2,786
JLY 12 29.950 30.440 29.110 - +.511 30.416 159 2,294
SEP 12 29.670 30.500 29.300 - +.511 30.399 60 833
DEC 12 29.700 29.700 29.015 - +.513 30.382 416 10,255
JAN 13 - - - - +.513 30.361 - 1
MAR 13 - - - - +.513 30.316 - 751
MAY 13 - - - - +.514 30.271 - 135
JLY 13 - - - - +.515 30.226 - 2,219
DEC 13 - - - - +.515 30.118 - 7,752
JLY 14 - - - - +.520 29.948 - 259
DEC 14 - - - - +.525 29.828 25 1,271
JLY 15 - - - - +.525 29.574 - 175
DEC 15 - - - - +.525 29.378 - 533
JLY 16 - - - - +.525 29.153 - 25
Total             46,953 101,102

Last Updated 10/05/2011 01:32 PM
HeNateMe · Oct 5, 2011 - 5:11pm

The Tipping Point

I was speaking with the reception at my office and her ex-husband today (really nice guy). Somehow the conversation turned to Bank of America. This guy was right up with me on everything that is going down. He spoke just like we all speak on this site. It was nice to see another kindred spirit. I told him I was stacking physical silver and he said he believed silver was the place to be. He also said his mom is stacking silver and only has a few hundred dollars in the bank. Even she is aware of the dollar devaluation. So, in the end, we both convinced the receptionist to get out and buy some silver. 

Also convinced my brother last night and my folks a few days ago to buy phyzz. 

I believe we are rapidly approaching a tipping point. 

HeNateMe

Tesla · Oct 5, 2011 - 5:12pm

Gold OI (-881 total contracts)

Daily Settlements for Gold Futures (PRELIMINARY)Trade Date: 10/05/2011
Month Open High Low Last Change Settle Estimated
Volume
Prior Day
Open Interest
OCT 11 1629.3 1644.7B 1599.6 - +25.6 1640.3 104 870
NOV 11 1627.3 1647.2 1598.8 - +25.6 1640.8 417 345
DEC 11 1626.8 1648.9 1596.6 1613.5 +25.6 1641.6 140,032 274,079
FEB 12 1629.7 1648.9 1599.8 1616.0 +25.5 1643.4 4,573 46,388
APR 12 1625.5 1647.2 1601.3 - +25.5 1645.0 783 11,440
JUN 12 1633.7 1637.6 1613.7 - +25.4 1646.6 122 16,776
AUG 12 1636.6 1647.3 1609.7 - +25.4 1648.4 33 7,277
OCT 12 1638.0 1639.7 1620.0 - +25.3 1650.2 125 4,866
DEC 12 1615.0 1632.0 1614.3 - +25.3 1652.4 227 15,574
FEB 13 1624.4 1640.2 1624.4 - +25.4 1654.6 52 3,385
APR 13 - - - - +25.5 1657.2 - 327
JUN 13 - - - - +25.5 1660.2 125 13,112
AUG 13 - - - - +25.6 1663.3 - -
DEC 13 1657.9 1657.9 1657.9 - +25.7 1670.2 347 12,586
JUN 14 - - - - +26.0 1682.7 10 7,463
DEC 14 - - - - +26.4 1697.2 110 8,946
JUN 15 - - - - +27.2 1714.8 10 5,976
DEC 15 - - - - +27.9 1734.3 10 6,098
JUN 16 - - - - +28.6 1755.8 69 116
DEC 16 - - - - +29.3 1778.3 - 1,259
JUN 17 - - - - +29.3 1804.0 - 37
Total             147,149 436,920

Last Updated 10/05/2011 01:32 PM
 
f · Oct 5, 2011 - 5:13pm

Questions

If someone had truly been lurking for months they would not need to be asking about whether people here store physical. Be careful what you post on here especially to suspiciously cheery posters.

ivars backseatdriver · Oct 5, 2011 - 5:18pm

@backseatdriver

Recession in the USA in q12012 and forwards plus the reserve currency status of USD and of government to borrow more will lead to debt deflation:

https://en.wikipedia.org/wiki/Debt_deflation

Which by definition is not inflation, as value of the USD at least vs. other currencies will increase, and paying down debts will reduce money in circulation ( velocity) so that the repayment of loans by USA citizens due to recession will in fact INCREASE the value of outstanding loans as USD value increases. Economy slows down too fast.

To maintain funding for government is such conditions USA can not afford default on debt, so FED etc will be very careful to boost money supply just enough to try to zero deflation , but not start serious inflation . Anyway, the money FED puts in the system just sits in banks and their deposits with FED, or is used to finance debt. Everything will soon be funded by superexponentially growing debt in whose fragile but stable availability both USA and creditors will continue to be interested ( IOU gains in value, why not take more of them?) . Until the moment debt crashes (2016) .

I do not deny inflation. It will come to Europe and other places tomorrow, but in USA only in 2015-2016.

So EUR should be spent outright to buy silver etc, and will serve as immediate hedge against inflation. But USD- does not make sense in deflationary environment forced upon USA by second recession.

Would be better if FED distributed printed money straight to people BUT with a condition that they do not repay debt, and banks will be forced to take immediate haircuts on all loans. Mayu be then money will start to flow in the real economy.

BUDDHA PRINCESS ¤ · Oct 5, 2011 - 5:23pm

Bees Dying

This is not anything new. bees in North America have been in decline for several years now. I can't use sugar, so I have been using honey which have many beneficial health faculties for years now. Over the past 2 years the price of l honey went form $4.99 to about $9.99.

Yes , pesticides is one reason, also there has been found some kind of fungus in their digestive system. But there is also the fact that the killer bees from Africa that found their way here, are extremely aggressive and attack the local bees. I believe in China or Japan they have no more bees, so the people actually pollinate the flowers of the pairs or apples with tiny brushes and tie a small brown bag over them. Very painstaking process indeed. The best honey is from New Zealand "Manuka Honey". Lots of healing properties. In the old days it was used on burns and healing other wounds. Honey was the gold nectar of the kings. Of course honey wine is very delicious.

The benefits of medicinal honey have been known for over 4,000 years after the Egyptians started to apply honey on wounds. In today's world with growing concern over antibiotic resistant staph and bacteria, scientists are taking another look at honey and its extraordinary qualities, being specifically interested in Manuka Honey Benefits.

humbleprofits Charles S. Hamlin · Oct 5, 2011 - 5:24pm

Kooks

Are kookaburra's considered recognized? They are the same price as maple leafs on Gainseville.

Humble

beardeus · Oct 5, 2011 - 5:27pm

I no longer support

I no longer support Armstrong's writings as I do not agree with this at all.

"To understand WHY he took this position, it is important to understand that the original design of the Fed back in 1913 was simply to create an institution of private bankers that would lend to each other in times of trouble to prevent a banking collapse."

ivars cpnscarlet · Oct 5, 2011 - 5:27pm

@cpnscarlet

I think I am not hiding much, it is just difficult to accept for a rational person that charts can be made based on charts.

But hey-everyone here-most is doing the same with short term chart plays ( bottom, top,support, Fibonacci, etc)- same exercise, except is shorter term - but many times right, also helps to know past actions on similar patterns,

What i look at specifically is SHOCKS- outliers - events that are Gaussian improbable yet happen with big frequency. These shocks make systems ( markets) predictable as they either prepare for one ( pre may silver of pre september gold overbuyin was predicted like that) , or after the shock, or, when they experience similar shock - the reaction may be roughly the same as previous time (depends on level of cooperation/herding/imitation in the system)

a_guy_in_hainesville rock collector · Oct 5, 2011 - 5:47pm

Paypal to issue 1099-K ?!?

Sorry if posted, I will keep reading.

I thought you had to have over 20K in sales and 200 payments. I am no where near that and I still got that message. I have not dealt with it yet. Hopefully more info in thread.

jhutches Doctor J · Oct 5, 2011 - 5:50pm

Here is a better version

Dr. Jerome lets try this instead.

A banker, a tea partier and a government worker enter a bakery.

The banker buys 11 with his vast wealth, the tea partier buys one, and the government worker uses his union, to agitate and protest at the bakers front door, in an attempt to extort all the cookies for himself, in addition he wants to retire at 45 with a guaranteed ration of unearned cookies for the rest of his life.

When the baker does not cave in. Then the government worker goes to Washington and blames the corrupt banker and the tea partiers for having too many cookies and his own lack of cookies and how the baker is unfairly conspiring with the bankers and the tea partiers.

This gets the government to pass a law to confiscate the baker's cookies and give them to the government workers union. Then the baker just goes out of business. Then everyone complains when there are no jobs for bakers.

Remember for humor to work it has to have a grain of truth to it.

ewc58 · Oct 5, 2011 - 5:57pm

Bits from Bill Murphy's Midas Report: please support GATA

"Ya gotta know what GATA knows"

Did the DOW suddenly reverse course and go back to where it was before the bogus rumor and rally occurred? Of course not. NEVER does. SICKENING!

Yesterday was the most egregious combined market manipulation of the US stock market and gold market I have seen in 13 years. The reasons for the price of gold to advance and for our market to remain under pressure accelerated, not the opposite. But in our Black is White, White is Black Behavioral Finance world in the US, the markets do the opposite. And because PRICE ACTION MAKES MARKET COMMENTARY, the US financial market press goes with the flow and gives the PPT and Gold Cartel a free pass on their hijinks. And so, on and on we go.

This is not just a rant going nowhere. Our financial markets are not free. Communist China would be proud. These continued operations are gradually leading our country’s financial markets and economy into a disaster gradually, one thought unthinkable many years ago.

As this plays out, the prices of gold and silver will go bonkers as the Orwellians lose all control of their rigging operations. There is no telling where the DOW could end up on the downside. What goes around, comes around.

To give further impetus to this line of market manipulation thought, James Mcsherry…

CME reduces(!) margin in the XAF

Bill,
What does GCZ, SIZ, and XAF have in common? According to the CME all 3 need one side of the trade fiercely protected. In the case of gold and silver it's the shorts that get protection, while with financials it's the longs that get the insider's help. In an irrational and "counterintuitive" decision the CME, at the height of extreme volatility in the financial sector, actually LOWERED margin requirements yesterday on the XAF by 33%. That's right, in the case of the financial index the CME is encouraging MORE volatility. There now can now be no doubt the CME manipulates trading through leverage and margin. After punishing silver and gold longs with well-timed and orchestrated margin hikes the CME is now intent on routing any financial shorts in the same manner. The XAF margin decrease announcement was once again perfectly timed, seeing how the Dow had just staged its 400 point "miracle" comeback. CME members should be long gasoline futures because they sure the hell have provided a lot of it lately scorching their opponents. Maybe the CME will next mimic Fed policy and end up with zero margin requirement for equities and TBTF banks.

CME margin for 1 silver contract: $24,975
CME margin for 1 gold contract $11,475
CME margin for 1 basket of insolvent too big to fail banks: $ 3,500

Facilitating manipulation for cartel traders: PRICELESS

zerohedge article: https://www.zerohedge.com/news/soaring-financial-vo
l-leads-cme-announce-33-margincut
James Mc

Was yesterday’s waterfall-like collapses mostly due to scared specs running for the hills, as cited in much of the precious metals market commentary? Heck no! Gold falls around $85 from London AM early lows to $1595 in late Comex trading, yet the gold open interest only dropped 881 contracts to 436,920. That sort of a drop of open interest would often occur in the past when gold dropped a dollar or two. No, this was a Gold Cartel selling attack near the highs, which caused spec selling near the lows … and probably led to some cabal covering, which meant staggering one day profits for the cabal forces. Love our free markets.

The silver open interest went UP 81 contracts to 101,102 on its sizeable fall.

The pleasant surprise for the day was the way the price of gold roared back late in the Comex trading session. After dropping to $1607 early in the Comex trading session, even with the DOW higher, gold scrambled back around the unchanged level, and then took off like a rocket in late trading.

This is NOT normal action for gold after a beating like it just took, so why did its sharp price rise break the traditional mold? I suspect it is because physical buyers looked around, saw the gold news was more bullish than yesterday when the price was sharply higher, and said, "thank you very much Gold Cartel," for the suddenly cheap gold.

The Planet GATA view all along has been the physical market will defeat The Gold Cartel’s efforts to suppress the price and today is a good example of that line of thinking.

That said, the bums were still on the case. James Mc with an encore…

Goon squad

High tick $1,648.90 Dec. = +2.00% on the nose, then BLAM, $6 selloff in a minute.

https://www.lemetropolecafe.com/

backseatdriver · Oct 5, 2011 - 5:57pm

Ivars

Wow. Just Wow. I don't even know where to start. I will have to pass on my response just for now because I don't want to write while I am very irritated at your last two statements. Please take no offense. 

BSD

backseatdriver · Oct 5, 2011 - 6:00pm

@Backseatdriver

Thanks. I post because I really enjoy this community. There are some of the most brilliant people I have ever read that post here, and the intellectual challenge is rewarding to say the least.

As for your comment, it is helpful to understand my perspective. I am a former Koolaid guzzler. I awoke slowly over time, but I did awake.

The money at stake in all of this is staggering, and probably beyond comprehension. Because the stakes are so high, and because I do not at all believe that powerful humans are magnanimous or honorable, but instead selfish, greedy, and corrupt to the core, I am only able to make predictions based on that cynical reality.

For example: in my line of work, there are those attorneys who do personal injury work, like me, but some small group of attorneys seems always to get the best cases. Why is that? Are they better attorneys, are they better marketers, or what?

Well, one day, because of my reputation as a trial attorney, who takes and wins difficult cases, I was approached by an attorney who wanted to refer some cases to me. He told me he has tons of cases, but the insurance companies are not paying fair settlement value, so he wants to start taking the cases to trial. Trial work is specialized, difficult, and nerve wracking, kind of like trading PMs, only easier. Ha ha.

Anyway, this attorney said to me that he does not have the skills, but he has plenty of cases, so he would rather pay the out of pocket costs, and have me take the cases to trial, in exchange, we would share the contingent attorneys' fee between us. So, I figured fine, he is paying the costs out of his pocket, and taking the financial risk of losing, but I am only taking the financial risk of my time, which I figured was a fair bargain. So, I agreed to the arrangement and he dumped five cases on me right there and then.

I took the first one to trial, and it was a real dog. I won it, but the jury did not give much, and it was a financial loser. I took the second one to trial. A woman was t-boned at an intersection, ended up in the ER and had a fractured pelvis. She had surgery, and spent a couple of weeks in the hospital. She had no recollection of the incident at all. The bills were humongous. The problem was that the only eyewitness to the collision was the other driver, who insisted it was my client's fault for running the stop sign. Skid mark analysis was not helpful, because the roads were wet and no skidmarks were left which could be analyzed in detail.

During my work-up of the trial, I asked the client how she ended up going with the first attorney. She told me that the Director of the Emergency Room himself, came into her room with a person from a law firm. The ER Director told my client to sign the paperwork, so that the law firm could help her. The ER Director and the person from the law firm were of Persian descent, and spoke Farsi. My client is black, and speaks only English. My client was heavily drugged up, but signed the paperwork.

Mind you, the ER Director and the law firm person engaged in HIGHLY unethical behavior which should have resulted in prison time for the both of them. But, because the law firm is a big, heavy hitter, and the ER Director is a major political donor with tons of money and clout, no prison sentences, no justice, nothing for the illegal client sign ups which basically suck up all of the easy cases and leave the rest to everyone else.

Oh yeah. The jury found against my client and I lost.

I sent back all of the other cases, with a short note: "I thank you for the referrals. Due to circumstances, I am respectfully declining to take on any further work from your firm. Please find enclosed the rest of the files. Good luck."

Cynicism is healthy, and unfortunately, appropriate. The only reason my expertise was wanted was because the case was a loser. The referring attorney knew he would get lots of other cases, so he did not mind spending a few grand. My, on the other hand, I had to win to get paid, so I had no choice but to go for it. I lost the case, but learned a great lesson.

So, I just do not see a scenario where FRN hegemony is lost AND the FRN is still in place as the currency. TPTB would never allow that.

As for the sheeple somehow managing to awaken fast enough to effect some form of meaningful change or reform, I have zero confidence in that. TPTB will simply roll out the new currency and voila, new fiat system. Hooray, all is saved! I mean really, look at today's disaffected youth. The vast majority of today's kids would perish if confronted by a small dose of what the people had to live through in the Great Depression. My dufus nephew is 21 years old. He works at a big box retailer for just above minimum wage. He lives at his parents' house, which his parents rent from their parents at a reduced rate. My nephew has a bastard three year old boy; the mother lives at her parents' home too, and works a minimum wage job as well. My nephew spends his time watching TV. He can tell you batting averages, and the singers on American Idol, but he has not a clue as to anything meaningful in life at all. He barely knows how to use hand tools. He cannot change a flat tire. He cannot cook, clean, or hold down any real, meaningful job besides pushing buttons on a cash register. He is, a prototypical example of why I remain very confident that the EE will have their way for a long time. I'm doing my part, I'm stacking and preparing.

Do I wish I was wrong? Hell yes!! Am I delusional enough to believe that all will work out and end well? Hell no!! Global wage arbitrage, reduced standard of living, desensitization to violence and the wholesale cheapening of human life mean to me that times are only going to get tougher, but for those that prepare, not so much. Having a stash of PMs is in my book, essential for survival when either inflation continues to erode the FRN value to zero, or the system collapses. Either way, the outlook is neither rosy nor something to wish for. I can guarantee you this: the EE will implement their plan when it suits them, so it is best not to delude oneself into believing otherwise.

Just my $0.02.

p.s. DPH: thanks for all of your killer videos, I love 'em!

The Vet humbleprofits · Oct 5, 2011 - 6:04pm

humbleprofits - kookaburra's

Are kookaburra's considered recognized? Kookaburras are one of the Perth Mints (PM) limited edition productions with a new design every year. Unlike the Koalas which are produced according to demand only a set number of Kookaburras are struck each year like the other "special" Perth Mint silver coins like the dragons and the other Chinese year series. Koalas and Kookaburras are both denominated as $1 legal tender in Australia and are 1 oz pure silver each in the standard form, but multi-ounce versions are also produced. All of these PM products are recognised by dealers world wide.

Last Rebel California Lawyer · Oct 5, 2011 - 6:19pm

@Ca Lawyer Spot on my

@Ca Lawyer

Spot on my brother.

jhutches Jdawg · Oct 5, 2011 - 6:21pm

@Jdawg

This was an amazingly lucid and motivational speech.

But what is sad is the vacuous and clueless looks from those kids in the crowd.

So sad, such a waste. What do you think they will do when the crash comes? Will they be able to just go home to momma and get a free meal and a place to stay?

ewc58 · Oct 5, 2011 - 6:25pm

Can you believe this?

Michelle "Antoinette" Obama's taxpayer-funded spending is an embarrassment for the White House

ok, the Antoinette deal was my edit :-) But what this British reporter doesn't understand is that these nice folks quite clearly don't know how to be embarrassed. If they did, surely they'd already have been hospitalized for it by now... This Michelle is a real winner.

Michelle Obama with her daughters in South Africa in June. (Photo: AP)

Michelle Obama with her daughters in South Africa in June. (Photo: AP)

Although ignored by most of America’s liberal-dominated media, several online US news sites are reporting that Michelle Obama’s grand tour of southern Africa earlier this year cost American taxpayers nearly half a million dollars – and that's just for the flights. This follows in the wake of claims this August from sources inside the White House itself that the First Lady may have spent “$10 million of taxpayers’ money on vacations alone in the past year.” Without all the figures available, it is impossible to establish the total cost to the public purse of Michelle Obama’s 42 days of holiday during that period, which included her trip to Spain last year (though not the Obamas' recent sojourn in Martha’s Vineyard).

But we do now know for sure that her visit to Africa in June, with a sizeable entourage in tow, cost taxpayers at the very minimum $424,142 in transportation costs, according to figures obtained by Washington-based watchdog Judicial Watch. As the 'Washington Whispers' blog at US News and World Report noted:

First lady Michelle Obama's family trip to South Africa and Botswana in June cost taxpayers well over $424,000, according to new accounting based on Air Force manifests obtained by Judicial Watch, a taxpayer watchdog group.

The use of Air Force aircraft alone for the June 21-27 trip cost $424,142, said the group, and that doesn't include the food, lodging, and ground transportation for the 21 family and staff members.

redwood · Oct 5, 2011 - 6:28pm

I know people here find

I know people here find Ivars' charts difficult to believe, but his are among the few that I've seen that have so accurately predicted what he initially established 9 months ago, not 9 weeks, not 9 days and not 9 hours. I think he needs to be taken seriously on that basis alone.

His deflationary model has been proposed by many, eg. David Rosenburg, in contrast to the inflationary hype, teasing the public with promise of Q3. Q3 will come, but not in a form that is identifiable to most, and therefore will not assist the market.

Ivars, thanks for a compelling set of charts and for the vast amount of work that you have generously shared with us.

humbleprofits · Oct 5, 2011 - 6:28pm

Thanks Vet

Thanks vet. I have seen that kookaburras usually sell at a bit of a premium compared to maple leafs and ASE. I was surprised to see them at the same price earlier today. I like the idea of a ten ounce or even a 1 kilo kook.

Humble

I_ate_the_crow · Oct 5, 2011 - 6:31pm

When will the dollar die?

Hence, the FRN fiat scheme is simply a massive control mechanism. Even though physical paper is not used in the majority of transactions, the unit of account is. Everything around us proves it: plastic credit/debt cards, digital currency, state and govt benefit cards, etc. The FRN will continue to be the reserve currency until something else takes its place, and which allows TPTB to maintain control. Guaranteed.

Absolutely, CALawyer. The utimate goal here is control so it seems obvious to me that a digital currency system stored in your own personal RFID chip is the end game here, and as you point out they are already well on their way to steering us into this eventuality. Anyone seen the latest Chase commercial? There are a bunch of people sitting around a table about to pay a group bill, but one "idiot" is making things so very difficult for the rest of them when he breaks out a wad of FRN's to pay his share. With Chase's new phone banking application the rest of them can simply transfer money from their account to their freinds account with the click of a button. Ironically the guy with the FRN's is indeed the misguided one but not in the way we know of course. Imagine the phone app being able to connect to your personal RFID chip and you start to get a sense of the future they envision. Need to pay for your groceries? Just scan your wrist like you do your rewards card now and the amount is automatically deducted from your account.

As the traders around here can attest the markets are a joke and without any semblence of rationality anymore. Why? Well the cartel controls them electronically through the PPT with HFT and computer algorithims. This gives the cartel ultimate manipulative control of the markets and by extension the broader management of economic percpetions. The next logical step is ultimate manipulative control of people themselves. RFID chips with GPS and registered with the government and thus automatically inserted into the CIA/DHS electronic surveillence network set up since the Patriot Act would accomplish this goal. Nowhere to run, nowhere to hide, no privacy. Yet another downside of the military-industrial complex. They develop or co-opt all of our technology and are already on to the next thing when the public finally gets its hands on it. We have all been conditioned to have cell phones, so most won't even think twice about the implications of things like that program just rolled out by Chase. Then again, maybe I've seen and read too much science "fiction".

You make a key distinction regarding what will be considered the "unit of account". That's all that matters. Currency is a medium of exchange. The FRN serves that purpose globally now but if you understand that it is backed by nothing but confidence, you understand that it cannot function as a store of value, especially when those controlling its supply are traitors to humanity. Thus it should be obvious why the paper silver and gold markets are so volatile and manipulated. Can't allow people to start opting out of their sytem before the new one is ready to be rolled out. As many people as possible need to be caught unprepared for the sentiment to be ripe for accepting anything.

I often wonder about the hyperinflation question and it does seem like it is a mathematical inevitabilty but I also don't see how it would benefit the elites because the resulting chaos might bring about a revolution that they cannot control. So I tend to agree with those of you supposing that they will try to trot out their new currency system before we reach that point. George Soros has told us as much: "The US must stop resisting the orderly decline of the dollar and the coming global currency". Gold will probably end up being a part of the new global reserve unit of account, but it will also include a basket of other fiat currencies. This is essentially what the SDR is already, but it will be digital. So just like the western middle/lower class and their agenda to bring the eastern worker to wage parity with the western worker, so to I believe is their agenda with the currencies before the global one is established. How else can we explain the Swiss franc move? Also, regarding the Gibson Guitar raid, I think it was partly designed to plant a seed with us that we should accept other nations laws in considering the interpretation of our own. How can you have one world corporation and its subsidiaries governing the world with a bunch of nation-specific legal codes? Obviously international law has been building since WWII but it is largely a joke and this seems like the next step.

On the other side of the fence there is no question in my mind that they have a depopulation agenda, so I can see how many might think that a Weimar-esque currency collapse would help bring this about. However these people are evil, sick and twisted. Why risk worldwide revolution when they can slowly poison the unaware population and in the process steal wealth from slow, expensive death with their unconscionable health care/pharmacuetical system? They did it with free energy alternatives to oil and murdered millions in "rouge" nations like Iraq and Libya trying to start their own currency-oil trade. I have no doubts that they are sick enough to do the same thing when it comes to people, supressing natural cures and even facilitating sickness with poisonous food/water. They are trying to ban supplements and raiding natural farms for fucks sake! It's all out there for us to see.

Their end result? Neo-fuedalism and wage-debt slaves that sadly have been so brainwashed that they believe they are free. The worst possible reality, the Orwellian nightmare.

But it doesn't have to end like this. This is just as much a battle of ideas in the collective consciousness as it is a battle for physical control of the systems under which we operate our daily lives. Keep planting seeds to help those around you to break free of their mental chains. Momentum is building against these treasonous cockroaches.

Bay of Pigs · Oct 5, 2011 - 6:32pm

BNN in Canada

Had some guy named Yoni Jacobs, Executive Director and Portfolio Manager at Chart Prophet Capital, on today bashing gold hard. I have tried to find the video on their site but to no avail.

Let's just say I just saw the biggest Delta Bravo I have ever seen in the last ten years speaking on national TV about gold. He really gave the reporter from CTV a run for her money. It was priceless.

I wouldn't be surprised they pulled that clip immediately. He was just brutal to listen to and appeared downright delusional. Even the host seemed relieved to let him go. LOL.

If someone finds that clip, please post it here.

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